REV-413(P/S) EX (10-09)
PA DEPARTMENT OF REVENUE INSTRUCTIONS FOR WITHHOLDING PA PERSONAL
INCOME TAX FROM NONRESIDENT OWNERS BY
PARTNERSHIPS AND PA S CORPORATIONS
PENALTY FOR FAILURE TO WITHHOLD payments of nonresident quarterly withholding tax shall run from
PA law imposes a 5 percent penalty for failure to pay on or before the due date to the 30th day following the close of the taxable year.
the due date the quarterly withholding tax on the distributive PA FINAL CATCH-UP PAYMENT OF NONRESIDENT
taxable income of nonresident partners and shareholders. The WITHHOLDING TAX
penalty is 5 percent per month or fraction thereof, to a maximum of
If the tax of the nonresident owners exceeds the nonresident quar-
50 percent, of the nonresident quarterly withholding tax due. terly withholding tax payments, the partnership or PA S corporation
PART 1. GENERAL INSTRUCTIONS must pay the deficiency by the date prescribed for filing the entity's
Partnerships and PA S corporations with taxable PA-source income are: PA-20S/PA-65 Information Return.
• Jointly liable with their nonresident partners and shareholders for When submitting the final nonresident withholding tax (catch-up) pay-
payment of tax on such income to the extent allocable to the non- ment for nonresident owners that are individuals, estates, or trusts,
residents; and print the last four digits of the entity's federal employer identification
number (FEIN) and 2009 Final Nonresident Withholding on the check
• Authorized and required to collect such tax from their nonresi- or money order made payable to the PA Dept. of Revenue.
dent owners and remit the tax to Pennsylvania.
When using approved software, submit the 2009 Nonresident
The imposition of the tax against the partnership or PA S corporation Withholding Payment substitute voucher with a check or money
does not change the filing requirements or the tax liability of its non- order and submit with the PA-20S/PA-65 Information Return, PA-40
resident owners. NRC or extension request.
The nonresidents take credit for the tax withheld on their annual Federal/State e-File
returns and treat their income from the partnership or PA S corpora- The final nonresident withholding tax (catch-up) payment can only
tion as income subject to withholding in computing any other person- be filed electronically when submitted with the return. Visit
al estimated taxes. The nonresidents may not deduct their personal www.revenue.state.pa.us for more information.
estimated tax payments from the tax imposed on the partnership or
PA S corporation. COLLECTION OF NONRESIDENT WITHHOLDING TAX
If the partnership or PA S corporation maintains a drawing account
NONRESIDENT PARTNER OR SHAREHOLDER for, or makes distributions or guaranteed payments to its nonresi-
The terms nonresident partner and nonresident PA S corporation dent partner or shareholder and the withdrawals or distributions are
shareholder include owners that are nonresident individuals, non- sufficient to cover the tax, PA law authorizes and requires the entity
resident inter vivos or testamentary trusts or nonresident dece- to deduct the tax from the drawing account or distribution when
dents' estates. credited. Otherwise, the time and manner of collection of the tax
The entity may rely on its business records to determine the identi- shall be a matter of settlement between the partnership or PA S cor-
ty, the place of residence, and the distributive share of income and poration and its partners or shareholders.
losses of each partner or shareholder. The entity may rely on such PART 3. STATEMENT OF NONRESIDENT WITHHOLDING TAX
records, unless and until the entity receives a notice furnished under Each entity with income from sources within Pennsylvania must pro-
federal temporary regulation § 1.6031(c)-1t. vide each of its nonresident owners with a PA-20S/PA-65 Schedule
PART 2. PAYMENT OF NONRESIDENT WITHHOLDING TAX NRK-1 showing the owner’s income, credits and tax withheld.
All partnerships and PA S corporations must collect and pay nonres- PART 4. FORMS COMPLETION INSTRUCTIONS
ident quarterly withholding tax. Use Part A and Part B of Form REV- Use the Partnership and PA S Corporation Withholding Tax
414(P/S), Partnership and PA S Corporations Withholding Tax Worksheet (REV-414(P/S)) to determine the nonresident quarterly
Worksheet, to figure the correct amount of 2010 nonresident quar- withholding amount. Use Form PA-40ES (P/S) or Form PA-40ESR
terly withholding tax. If the aggregate 2010 nonresident quarterly (F/C), Declaration of Estimated Personal Income Tax to pay the
withholding tax will be less than $500, the entity must pay within 30 2009 nonresident quarterly withholding tax.
days of the close of the taxable year.
Use Part A and Part B of Form REV-414(P/S) to figure the correct
If the aggregate 2010 nonresident quarterly withholding tax will be amount of 2009 nonresident quarterly withholding tax to pay. Keep
$500 or more, the entity may either pay all of the nonresident tax with a record of nonresident quarterly withholding tax payments made
the first payment or pay in installments when due. Use this table to and the amount of remaining nonresident quarterly payments on
determine the amount and due date for each installment of nonres- the Record of Withholding Tax Payments. Use Part D of Form
ident tax. If the due date falls on a Saturday, Sunday, or legal holi- REV-414(P/S) to figure the correct balance of nonresident quar-
day, the due date is the next business workday. Interest on under- terly withholding tax due when filing the 2009 PA-20S/PA-65
The entity should pay the following percentages of the withholding tax by the date shown or the
If the entity can reasonably determine The required number next business day if the due date falls on a Saturday, Sunday or legal holiday.
that its aggregate nonresident with- of withholding tax
holding tax will exceed $500 for the installments is: By the 15th day
taxable year: By the 15th day By the 15th day By the 15th day of the 1st month
of the 4th month of the 7th month of the 10th month after the close of
the tax year
Before the 1st day of the 4th month 4 25% 25% 25% 25%
After the last day of the 3rd month- 3 25%
before the 1st of the 7th month 50% 25%
After the last day of the 6th month- 2 75% 25%
before the 1st of the 10th month
After the last day of the 9th month 1 100%
Information Return. Use Form PA-40ES (P/S) or Form PA-40ESR COMPLETE A NAME, ADDRESS, TAX IDENTIFICATION NUMBER
(F/C) forms for properly paying the nonresident quarterly withhold- CHANGE FORM, (FORM REV-459) and mail it to:
ing tax. PA DEPARTMENT OF REVENUE
If the partnership or PA S corporation does not receive its BUREAU OF INDIVIDUAL TAXES
preprinted Forms PA-40ES (P/S) or the forms are damaged, use PIT DELINQUENT TAX DIVISION
Form PA-40ESR (F/C). See Forms Ordering in Part 7. Failure to
receive Department-provided forms does not relieve a partnership PO BOX 280510
or PA S corporation from filing and paying the tax. HARRISBURG PA 17128-0510
FORM PA-40ESR (F/C) DECLARATION OF ESTIMATED DO NOT USE THIS ADDRESS TO SEND PAYMENTS.
PERSONAL INCOME TAX The Department will only provide new forms when you make a
Partnerships or PA S corporations filing a nonresident quarterly with- change to your tax identification number or name. The Department
holding tax return for the first time use Forms PA-40ESR (F/C). will make address changes for the next year's nonresident quarter-
Thereafter, the Department will provide preprinted Forms PA-40ES ly withholding tax forms.
IMPORTANT: PART 6. AMENDING NONRESIDENT QUARTERLY
When filing Form PA-40ESR (F/C), enter the Federal Employer WITHHOLDING TAX PAYMENTS
Identification Number (FEIN) of the partnership or PA S corporation; The partnership or PA S corporation may have a change in income
never use the Social Security Number of an owner. or credits during the year that would require it to change or amend
its nonresident quarterly payments. To amend, refigure the nonresi-
Complete the other identification information on the left-hand side
of the coupon. In the middle column, fill in the oval to indicate the dent tax using Form REV-414(P/S). Then subtract the payments
account is for a partnership, association, or PA S corporation. In made to date. Make the remaining payments using the table.
the right-hand column, enter the fiscal year information if applica- PART 7. FORMS ORDERING
ble, as well as the amount of payment or declaration of tax (see If the partnership or PA S corporation did not receive its preprinted
instructions under Part 5 for specific information about how to forms or they were damaged or lost, order Forms PA-40ESR (F/C).
complete these lines). For answers to common questions and to obtain other tax forms,
PART 5. HOW TO COMPLETE AND USE THE DECLARATION OF schedules and instructions from the Department, you may:
NONRESIDENT WITHHOLDING TAX FORM • Call our toll-free FACT Line at 1-888-PATAXES (1-888-728-2937)
There is a separate Form PA-40ES (P/S) for each period. Submit the -- Within the local Harrisburg area, call (717) 772-9739;
form only when a payment is due, and: • Use the FACT Line to access the Fax Response system to
• Enter the amount computed on Line 4, Part A of Form REV-414 request tax forms;
(P/S), Partnerships and PA S Corporations Withholding Tax
Worksheet, in the Declaration of Nonresident Withholding Tax • Log onto the Department’s Web site at
• Enter the payment in the Amount of Your Payment area; • Send e-mail requests for forms to the Department at
• Make the check or money order payable to "PA Dept. of firstname.lastname@example.org; or
Revenue," printing the last four digits of the entity’s FEIN and
Nonresident Tax Payment on the check or money order; Send written requests for Form PA-40ESR (F/C) to:
• Do not staple or attach the payment to Form PA-40ES (P/S); PA DEPARTMENT OF REVENUE
• Mail Form PA-40ES (P/S) and check in the envelope provided; TAX FORMS SERVICE UNIT
• Fill in the record of nonresident tax payments in Part C of the 711 GIBSON BOULEVARD
2010 Withholding Tax Worksheet.
HARRISBURG PA 17104-3200
Do not use Form PA-40ESR (F/C) form or any other facsimile form
when you can use a preprinted Form PA-40ES (P/S). DO NOT USE THIS ADDRESS TO SEND PAYMENTS.
Use only the properly dated Form PA-40ES (P/S) for each nonresi- Send written requests for preprinted Form PA-40ES (P/S) to:
dent quarterly withholding payment.
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
The Department personalizes each Form PA-40ES (P/S) form with
the partnership or PA S corporation identification information, includ- PIT DELINQUENT TAX DIVISION
ing an encrypted version of the entity’s federal EIN in the unique line PO BOX 280510
of information that the Department uses to post the payments. DO HARRISBURG PA 17128-0510
NOT GIVE THESE FORMS TO ANY OTHER TAXPAYER. THIS
MAY CAUSE THE ENTITY’S PAYMENT TO BE APPLIED TO AN DO NOT USE THIS ADDRESS TO SEND PAYMENTS.
INCORRECT ACCOUNT. You may also contact a Revenue district office for forms or assistance.
DO NOT MAKE CORRECTIONS ON YOUR FORMS PA-40ES These offices are listed on the reverse side of the Partnership and
(P/S). IF THE PREPRINTED INFORMATION IS INCORRECT, PA S Corporations Withholding Tax Worksheet, Form REV-414 (P/S).